You ARE a Happy Business Owner (Whether you know it or not!)

Did you know that, as a business owner, you're happier than your employees? That’s right, the latest research indicates that despite the trials and tribulations of starting and running your own business, “entrepreneurs are happier and healthier than employees”. OK, so what?

Well, we love to work with happy entrepreneurs; creative people who find joy in the work they do because they’ve discovered a variety of ways to help and support clients who need them. And, according to more from Inc.com, “Despite the uncertainties of starting up, entrepreneurs on the whole actually report higher mental well-being than those comfortably ensconced in a steady job.

That said, however, we’ve also found that entrepreneurs who are forced into unfamiliar areas of running their business are far less happy. Just a few examples of these might be strategic marketing, lead generation, and writing a blog.

In fact, experience tells us that, once a new business reaches a certain level of success, these areas can become overwhelming and can suck the energy and joy from running your own business. In other words, if your expertise lies in designing and realizing spaces for living more comfortably or filling those spaces with luxury furnishings, it’s highly unlikely you’ll have the time (or inclination) to learn the fine points of say, online marketing.

That’s why we’ve been sharing a few business practices that we, and Ted, believe can help to smooth things out for you!

Ted Fall’s #1 Practice for Small Business Owners

It’s not at all unusual for a highly focused, energetic entrepreneur to suddenly feel overcome and defeated by the demands of promoting their business. Even those who recognize and accept that they can’t be everything to everyone will often try to do it all themselves. (Remember, you also can’t be all things to yourself!!!)

And so, we’re forced to ask, as a business owner, do you feel like…

• Your endless to-do list is getting the best of you, robbing the joy out of a business you once loved.

• You are drowning in projects you know you should do, but can’t find time for.

• You need help but don’t want to try one more mediocre design apprentice, only to be disappointed.

• You’re tired of the revolving door of support, where you’re the only one who can really run your business.

First and foremost, Ted’s advice is this: stick to what you love and do best. If you hire good people to support you while focusing on client acquisition and satisfaction, your revenue and profits will take care of themselves.

We would never claim that we could do what you do better than you, but we can confidently declare that we can support you by doing the things you either can’t or do not want to do. The things that are critical to your long-term growth and success – and which will enable you to focus on the things you do best – servicing clients, designing gorgeous spaces, offering the best home furnishings money can buy, and increasing profitability.

Learn More from Ted Fall Consulting

Virtually every interior designer and luxury furnishing dealer will experience frustration from the demands of running their business. This is normal. However, that does not mean you can’t find the support you need that will enable you to focus on the reason you started your firm – helping your clients live better, more comfortable lives.

If you’re struggling with the daily demands of building or running your business, Ted can help. Simply… Contact TD Fall today for professional business consulting to the trade.

Business Practices – Dealer and Designer Priorities to Make Life Easier

Among all the possible business practices to choose from, what is your Number One: either your greatest headache or your greatest joy?

It should go without saying that for interior designers and luxury furnishing dealers, helping their clients reimagine and realize a space brings them the most satisfaction. Yet, there are so many other aspects to running a business that make doing so possible. That is, the business practices and procedures specific to your needs that cannot be ignored by any business owner to be successful.

To illustrate just a few of these, our Hero and Mentor Ted offers a short list of things to consider:

• Hiring/recruiting the right talent for the right position and fit

• Systematizing and Creating manuals for each part of the business

• Creating strong relationships with reps and vendors

• Software for workflow

• Rates and how much to charge as well as how to justify it

Oh yeah, these look like fun! And remember, this is Ted’s shortlist!

Practice Building Value in Your Goods and Services

For as long as people have exchanged goods and services, whether by barter or coin, a basic truism has existed: Price is what you pay while value is what you receive.

Whether it happens regularly or just occasionally, if you have clients questioning your interior design rates or furniture pricing, you’ve failed to convey the value of what you have to offer. Now, while it’s true that some folks simply enjoy negotiating the cost of everything, overwhelmingly the above is true. In other words, it is up to you to convince them of the value they will receive from doing business with you.

To make the sale, the value must exceed the price, or they simply won’t buy. Stated even more simply, you must address their Number One concern by answering the question, “What’s in it for me?”

Frankly, if you can make a client or prospect understand the value of your reputation and the quality of the work you do, as well as the quality durability, and style of the furnishings you are recommending, you should receive little or no resistance to the cost of a project.

Designers Who Stress Value to Justify Their Rates

We found further insight into this question in an article at BusinessOfHome.com. Titled “4 ways to respond to a client questioning your rates”, and written by BOH contributor Marina Felix, two of the four designers she spoke with stressed their value specifically, while the other two did so implicitly.

For example, “If a potential client is trying to haggle, they probably can’t afford my rates or the additional furniture, décor, and contracting, either, and that is a preview of a rough client relationship. I also want to work with clients [who] don’t just love my work, but also see my value and respect what I bring to the table. That means paying my rates. The price is the price. Period.” - Amber Guyton, Blessed Little Bungalow, Atlanta

She also emphasized her willingness to say "No" to a potentially difficult client: “Once you have the experience and confidence to stand your ground, you’re OK telling those potential clients no, asking them to consider executing their design in phases to meet their budget or just wishing them well [and moving on].”

The same is true for Melinda Trembly of Rincon Road Design Studio in Carpinteria, CA, who shared her thoughts thusly: “I typically run into two types of clients: those that value what I bring to the table and trust me to be the expert – those [who] are happy to pay for high-level services and product – and those [who] second-guess themselves at every decision. They don’t trust themselves enough to trust me, which inevitably runs into extra time and costs. Those are the clients who tend to come to me with unrealistic expectations, including pricing.”

Learn More from Ted Fall

Virtually every interior designer, as well as luxury furnishing dealers, will experience questions about the cost of a remodel, furniture, floor coverings, and wall coverings. If you’re struggling to answer such questions or with building the value intrinsic to your work, Ted can help.

Simply… Contact TD Fall today for professional business consulting to the trade.

Business Building – Tips to Increase Profit Margins

It’s a shame so many consumers get confused by the difference between markups and profit margins – as do not a few business owners. The difference between a 100% markup versus a 50% margin is vast. Yet, it is often impossible to explain it in ways that the average person understands that your profit margin is not really two times what you paid but merely half the selling price. Further, that bit of profit above the cost of merchandise must then be used to cover the overhead incurred by running your business: salaries and benefits, rent, utilities, insurance, training, investing in new products, the list at times seems endless!

Too often, if a potential client learns of such a markup they will scream, “That’s a 100% profit” and run as fast as they can from you, leaving you in their dust like the Road Runner does to Wile E Coyote!

On the other hand, finding ways to protect and increase profit margins whenever possible is critical to the success of your business, whether you're an interior designer or luxury furnishings dealer.

These thoughts came to us thanks to a recent article at the Business of Home website titled, “Stocking dealers get better pricing on product. Here’s how you become one.”

Becoming a Stocking Dealer will Increase Profit Margins

“The discounted pricing trade brands offer designers allows them a better margin on the products they place in their projects. But many companies also offer an even deeper discount – one that comes with more strings, but that can radically transform [your] firm’s bottom line.”

Or, more simply, the more you buy the better your price. This means, by stocking the furnishings you most often place in your client’s homes in your showroom, making them available for immediate delivery, will get you deeper discounts.

While this is a fairly standard practice for furniture dealers, interior designers may find it difficult to alter their order-as-you-go business model. However, there are many perks to becoming a stocking dealer beyond potentially realizing an exponential return on investment.

Benefits of Becoming a Factory Direct Product Dealer

The benefits of building these more direct relationships with your vendors will often include much more than deeper discounts on their products. These may include improved access to “ [fabric] swatches, samples, and detailed product questions, [and] access to a vendor’s internal online product catalog so [you] can instantly check price lists, see if items are in stock, and monitor shipments.” And, as the article explains … Wait, there’s more!

• Setting up Your Space – Before pursuing any sort of partnership with a brand, most designers must overcome one major hurdle: the retail space. Stocking dealer relationships are typically contingent upon a designer owning a physical shop or showroom where products can be displayed and sold. It makes sense: Brands are investing in their retail partners by offering better margins in exchange for sales floor exposure and a resulting increase in orders.

• Getting A Foot in the Door – After you’ve pinned down your brick-and-mortar strategy, the next step to landing that coveted stocking dealer partnership is meeting with the vendor’s regional sales representative, who acts as a gatekeeper. Home furnishings trade shows like High Point Market are a good place to begin putting a face to the names behind promising brands.

• Making a Deal – While setting yourself up for success and courting the right brand are key to the process of netting a brand partnership, there’s another crucial step to take before inking a deal: Doing your due diligence to make sure that the brand is a fit for you. Then, it’s time to hammer out the terms of the financial arrangement, including a minimum opening order and requirements for annual spending.

• The Payoff for Dealers – Though each brand’s approach to signing a stocking dealer varies widely, there’s a benefit to that as well – designers have space to negotiate a partnership that best fits their business. With a basic knowledge of how the process works and a willingness to go out and hustle, you’re already on your way.

Needless to say, there are other ways for designers to increase profit margins on product sales. If you are curious about what some of these might be, Ted is available for business consulting to help. Simply Get in touch with TD Fall today.